Netflix reported fourth-quarter revenue growth of 18% (17% expected), driven by membership growth, price hikes, and increased ad revenue.
Operating profit rose 30% to $3.0bn, with margins up from 22.2% to 24.5%. Both came in ahead of expectations, driven by the top-line growth.
Free cash flow rose 36% to $1.9bn, and net debt was at $5.4bn at the end of the period.
For 2026, first-quarter revenue is expected to grow 15% (16% expected), with operating margins improving by 0.4 percentage points (2.6 expected). For the full year, revenue growth of 12-14% was broadly as expected, but margin guidance of around 31.5% was lower.
Netflix has amended its Warner Bros. offer to all cash and will be suspending share buybacks to help fund the acquisition.
The shares fell 5.4% in pre-market trading.
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Netflix key facts
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